Cisco exec says vehicle big data has a value of $1,400 per year

Article by Anita Panait, on August 10, 2013

Big data -- referring to a massive collection of data that has become difficult to process through traditional database tools and applications – has invaded the world of automotive. Andreas Mai, director of product management at Cisco Systems Inc., recently revealed that the big data generated by a connected car is worth a cumulative $1,400 annually per vehicle to the motorist, carmaker, society and service providers. How did he come up with such amount?

Around $550 is saved by the motorist through achieving better fuel economy, spending less time stuck in traffic, and getting lower insurance rates. Around $300 is saved by carmakers through lower warranty costs and profitable apps. Around $420 is saved by the society by employing car platoons to speed up traffic and increase a road's capacity. Around $150 can be earned by service providers by providing traffic guidance, navigation, parking as well as emergency services.

But Mai acknowledge some privacy issues involved with big data generated from cars, as there is a question of whether motorists would allow carmakers to use their vehicle data. Mai, however, believes that motorists would agree to share their data if they could gain from it, for instance, getting lower insurance rates if they share data with their insurer.

Mai said that a survey commissioned by Cisco showed that around 74 percent of motorists were willing to share vehicle data. But access to these data should be sorted out since it is likely that carmaker would share them with other company. Mai remarked that rules are needed on who owns that data, who is most likely the consumer, since he purchased the car.

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Mazda’s RX-7 and RX-8 rotary sports car are two of the most beloved sports cars from Japan. Aside from their terrific road balance and agility, these sports cars are powered...
by - December 8, 2016
Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries